Question

which situation is the best example of regulation in an economic system?
a retail business just opened a new store in a community close to its original location
a small clothing shop slashed it prices to attract customers from a larger department store nearby
a farmers market has offered a special deal to customers from a nearby yoga school.
a state agency has been created to monitor the production and distribution of sports drinks

Explanation:

Regulation in an economic system involves government or state - level oversight. A state agency monitoring production and distribution (as in this option) is a form of regulation. The other options (opening a new store, slashing prices, offering a special deal) are private - sector business decisions rather than regulation.

Answer:

A state agency has been created to monitor the production and distribution of sports drinks.